Payless ShoeSource
Payless ShoeSource was an American shoe store founded in Topeka, Kansas by two cousins, Louis and Shaol Pozez, in 1956. In 1961, it became a public company as the Volume Shoe Corporation which merged with The May Department Stores Company in 1979. In the 1980s, Payless was widely known in the U.S. for its Pro Wings line of discount sneakers, which often had Velcro straps instead of laces. In 1996, Payless ShoeSource became an independent publicly held company. In 2004, Payless ShoeSource announced it would exit the Parade chain and would close 100 Payless Shoe outlets. On August 17, 2007, the company acquired the Stride Rite Corporation and changed its name to Collective Brands, Inc. The company had a total revenue for 2011 of US$ 3.4 billion. The company also has a stunt premium banner, Palessi Shoes. On February 14, 2019 (less than two years after the vert first bankruptcy in April 2017), Payless had a second bankruptcy and will close all 2,300 stores. History Circa 1962–63, Volume Shoe company purchased the original Hill Brothers Shoe Company based in Kansas City, Missouri and converted approximately all 25 of their stores to the "Payless" name. In 1971, Volume Shoe obtained the second Hill Brothers Shoe Store chain that was started in St. Louis, Mo in 1956 by Al Melnick and Sol Nathanson with the assistance and aid of the original Hill Brothers in Kansas City. The St. Louis version of "'Hill Brothers Self Service Shoe Store'" went from 3 to 103 stores in the Midwest and South between 1956 and 1971. Volume Shoe originally operated the 103 stores under the "Hill Brothers Self Service" name. Starting in 1972, Volume Shoe began to consolidate stores in proximity and convert others to the "Payless" brand. The St. Louis operation of "'Hill Brothers Self Service'" stores were known for their bare bones minimalism and the slogan "two for five – man alive!", that is, women and children's shoes were two pair for five dollars. Payless bought Picway Shoes from the Kobacker department store chain in 1994. Key Dates 1956: Pay-Less National is founded in Topeka, Kansas, by two cousins, Louis and Shaol Pozez, to open self-service stores selling budget footwear. 1962: The company goes public as Volume Distributors. 1967: The company is renamed Volume Shoe Corporation; an accelerated expansion program is launched. 1978: The Payless ShoeSource name is adopted for the bulk of the company's retail outlets. 1979: Volume Shoe is acquired by the May Department Stores Company. 1991: The company name is changed to Payless ShoeSource, Inc. 1996: May spins Payless off to shareholders, making it once again an independent, publicly traded firm. 1997: The mid-priced shoe chain Parade of Shoes is acquired from J. Baker, Inc.; the first Canadian Payless stores open. 1999: The firm launches e-commerce at payless.com; Payless opens locations on the sales floor inside Shopko discount stores, replacing J. Baker. 2000: Payless enters into a joint venture to expand into the Central American region. 2004: As part of a major restructuring, Payless announces that it will close down the Parade chain and close hundreds of Payless ShoeSource outlets. 2012: Collective Brands Inc., which owns footwear brands such as Sperry Top-Sider and Keds as well as the retailer Payless ShoeSource, will be split in two by multiple buyers, Wolverine Worldwide, Blum Capital and Golden Gate Capital, in a purchase valued at $2 billion, including debt. 2017: Payless Shoesource filed for Chapter 11 Bankruptcy and closed 400 stores nationwide. 2019: Payless to file for second bankruptcy. Bankruptcies In April 2017 the company, struggling with the migration of retail shopping to e-commerce, filed for Chapter 11 bankruptcy. It plans to immediately liquidate nearly 400 stores in the United States, Canada and Puerto Rico. Prior to the bankruptcy, heavily loaded with debt due to a private equity buy out, the company's credit rating was downgraded by Moody's. It has $100 million in loans that will come due in the next five years. The company's bankruptcy announcement was part of a trend of retail closures in 2016–2017 known as the retail apocalypse. Payless emerged from bankruptcy court protection in August 2017. The company was the first among a group of retailers going through bankruptcy since 2016 to successfully complete the process of restructuring. On February 14, 2019, Payless ShoeSource filed for bankruptcy again and will close all 2,300 stores. Category:Shoe Stores Category:Disappeared in the 2010s Category:Mall stores Category:Filed for Bankruptcy Category:Disappeared in the 21st century